For purposes of this disclosure, in some embodiments, the term “Life insurance product(s)” refers to annuities and other life insurance products such as, but not limited to, variable universal life, variable life, universal life, and traditional (non-variable) whole and universal life products along with any riders.
For example, Bank-owned life insurance (BOLI) and corporate-owned life insurance (COLI) products have been used by banks and corporations to fund employee benefits because of the substantial cost advantages of these products. Some BOLI and COLI products can be non-variable life insurance policies which have cash values invested in the insurance carrier's general account resulting in the policy owner's ability to account for their insurance by booking the cash surrender value but being exposed to the credit risk of the insurance carrier. FIGS. 1A and 1B depict a scenario where Banks A through K purchased non-variable life insurance policies from Insurance Carriers W through Z. The insurance policy would be administered on the insurance carrier's system, and all cash value was invested in the insurance carrier's general account. Policy owners would split large purchases between several insurance carriers in order to limit the credit risk exposure to each. FIGS. 1A and 1B depict such a split where Bank A purchased policies from Insurance Carrier W and Insurance Carrier X.
Other BOLI and COLI products can be variable life insurance policies which have cash values invested in various investment options of an insurance carrier's segregated, separate account which is protected from the claims of creditors of the insurance carrier. Still other BOLI and COLI products could have volatility reduction features to investment options in the separate account.